Shares of REITs and utilities stocks are trading lower amid a rise in Treasury yields.
Portfolio Pulse from Benzinga Newsdesk
REITs and utilities stocks, including AES, DLR, PLD, and REXR, are trading lower due to an increase in Treasury yields. This movement suggests a shift in investor preference towards safer assets, impacting these sectors known for their dividend yields.
April 15, 2024 | 7:53 pm
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NEGATIVE IMPACT
AES Corp's stock is trading lower as rising Treasury yields make its dividend yield less attractive, shifting investor focus towards safer assets.
AES, being part of the utilities sector, is affected by the rise in Treasury yields as investors seek assets with safer returns, making AES's dividends less appealing.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 75
NEGATIVE IMPACT
Digital Realty Trust's shares are down amid a broader decline in REITs, driven by an uptick in Treasury yields which makes REITs less attractive for their dividend yields.
DLR, as a REIT, is negatively impacted by the increase in Treasury yields, as this makes the fixed income from REITs less attractive compared to the safer Treasury bonds.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 75
NEGATIVE IMPACT
Prologis shares are trading lower in response to the rise in Treasury yields, which detracts from the appeal of REITs known for their high dividend yields.
PLD's performance is impacted by the broader market trend where rising Treasury yields make the fixed income from REITs, like PLD, less attractive to investors seeking dividends.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 75
NEGATIVE IMPACT
Rexford Industrial Realty's stock declines as investors shift towards assets with safer returns amid rising Treasury yields, impacting the attractiveness of REITs.
REXR, being a part of the REIT sector, faces a decline as the increase in Treasury yields makes the sector's dividend yields less appealing, driving investors towards safer assets.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 75